Transforming Nutraceutical Innovation Through Science, IP, and Scalable Manufacturing

Healthy Extracts Inc. (OTCQB: HYEX)

Company Overview

Healthy Extracts Inc. (OTCQB: HYEX) (“HYEX” or the “Company”) is a platform for acquiring, developing, patenting, marketing, and distributing plant-based nutraceuticals that deliver transformational health benefits. The firm has built a vertically integrated platform spanning ingredient acquisition, product development, patenting, manufacturing, and multi-channel distribution in the multi- billion-dollar nutritional supplement and alternative drug delivery markets.

Growth through strategic acquisition created its three product pillars:

Bergamet NA™ (Feb 2019 acquisition)
Ultimate Brain Nutrients (UBN™) (Apr 2021 acquisition)
Gummy USA™ (Jul 2025 merger)

Together, these acquisitions give HYEX a unique competitive position:

1. Integrated manufacturing for scalability and margin control.

2. Patented formulations and exclusive delivery technologies (gummies, gel packs, straws).

3. Exclusive ingredients with superior clinical backing.

4. Omnichannel distribution (e-commerce, retail, influencer private label).

HYEX’s model is designed for both organic growth and bolt-on M&A, enabling it to rapidly expand product offerings while capturing economies of scale. 1

Industry & Market Opportunity

Global Nutraceutical Industry

Market Size: $459B in 2024 → $987B by 2032 (8.3% CAGR).²

Structural Growth Drivers:

Rising healthcare costs ($4.8T in U.S., outpacing GDP growth).
Shift toward preventive wellness over reactive treatment.
Younger demographics favoring natural, convenient solutions.
Increasing consumer trust in science-backed formulations. 2

Core Segments HYEX Targets

Overall Nutraceutical Market: $459B (2024) → $987B (2032), CAGR 10.2%.
Heart Health Ingredients: $21.1B (2024) → $55.3B (2030), CAGR 4.6%.
Brain Health Supplements: $8.3B (2022) → $15.7B (2030), CAGR 9.4%.
Digestive Health Products: $51.6B (2023) → $68.2B (2030), CAGR 8.3%.
Gummy Supplements: $10.5B (2024) → $27.6B (2032), CAGR 4.2%.

Competitive Landscape

Fragmented Market: No single dominant nutraceutical brand globally.
Large Caps: Nestlé Health Science, Bayer, Herbalife, Amway, they have strong distribution but lack nimbleness and unique delivery tech.
Direct Competitors: Companies like Nature Made, SmartyPants, Olly (gummies) – but few with patented delivery tech or exclusive high-potency ingredients.
HYEX Differentiator: Proprietary formulations (Citrus Bergamot SuperFruit™), proprietary SureDose™ gummy manufacturing, exclusive delivery systems, and influencer-driven private label expansion.

Business Model & Differentiators

HYEX operates a vertically integrated nutraceutical platform, controlling the full product lifecycle from ideation → R&D → clinical testing → IP protection → in-house manufacturing → direct-to-consumer and wholesale distribution. This end-to-end model enables scale, protects margins, and supports both organic growth and bolt-on acquisitions.

Proprietary Edge

Patented Formulations & Exclusive Delivery Systems: SureDose™ precision-dosed gummies, GelPacks, and Gut Health Straws differentiate HYEX from competitors.
Clinical Validation: 17+ published studies supporting efficacy in cholesterol reduction, cognition, migraine relief, and statin tolerance.
Exclusive Ingredients: U.S./Canada rights to Citrus Bergamot SuperFruit™, a higher- potency formulation than ~38% of competitors.

Sales Strategy

High-ROI Digital Marketing: Proven model generating ~$1M revenue per $300K spend.
Influencer Leverage: Exclusive branded lines and private-label partnerships reduce CAC and accelerate product adoption.
Omnichannel Distribution: Combination of e-commerce, retail expansion, and influencer-driven channels provides scalable growth.

Key Differentiators

Scalable Platform: End-to-end integration ensures speed, efficiency, and margin control.
Proven Revenue Growth: Clear path to $20M+ revenues with high-margin scalability.
Aligned Capital Structure: 89% insider ownership and low leverage underscore long- term value creation.
Favorable Market Tailwinds: Positioned in nutraceutical categories with sustained double-digit CAGR.

Recent Developments

Gummy USA Acquisition (July 2025)

Adds FDA-registered, GMP, HACCP-certified production capacity. Scalable to $20M+ in annual revenues. Unlimited growth potential with manufacturing expansion
Proprietary SureDose™ technology enables precision manufacturing for B2B, private label, and clinical markets.
Strategic synergies with HYEX brands: accelerates cross-selling and innovation pipeline.

Product Pipeline (2025)

Launched: Natural Sleep, and Statin Users Formulas, Gut Health Straws, Hydration, and glucose Gel Packs.
Planned (2026): Gummies: citrus bergamot, hair growth, anti-aging, workout, GLP-1 (support), and collagen.

Influencer Strategy

Whitney Johns (1M+ followers): Exclusive branded line (women’s hormone support, brain health, gut straws).
Private Label Program: Enables influencers to co-develop nutraceutical lines at low cost, accelerating product velocity.

Acquisitions

Bergamet™ (Heart Health): Acquired Feb 2019. Exclusive U.S./Canada rights to high- potency Citrus Bergamot (47% BPF). Backed by 17+ clinical studies, 5x sales growth since acquisition.
Ultimate Brain Nutrients (UBN™): Acquired Apr 2021. Proprietary nootropic complex with published clinical results. Sales doubled since acquisition; expanding into migraine and dementia support.

Financial Overview

Valuation: Market cap $28.1M → ~2.4x 2025E sales (below peers at 3–5x).
Profitability: High gross margins expected from premium formulations and in-house production. Marketing efficiency demonstrated by strong ROI.

Catalysts

Post-merger synergies: Scaling Gummy USA production + cross-selling across HYEX brands.
Retail expansion: Additional grocer/pharmacy rollouts in 2026.
New product launches: Gummies: citrus bergamot, hair growth, anti-aging, workout, GLP-1 (support), and collagen.
M&A pipeline: Targeting under-distributed, IP-rich nutraceutical firms.
Influencer network expansion: Additional partnerships beyond Whitney Johns.
Consumer delivery advantage: Offers a full suite of delivery modalities (gummies, gel- based supplements, and functional straws), providing consumers with unmatched choice, convenience, and innovation across the nutraceutical market

Risks

Execution: Integration of Gummy USA and ramp-up of production.
Regulatory: FDA/FTC scrutiny over marketing and health claims.
Liquidity: Thin float may limit institutional participation.
Competition: Fragmented market; rivals may copy delivery formats.
Dependence on marketing: Revenue tied to effectiveness of influencer campaigns.

Conclusion

HYEX sits at the intersection of nutraceutical innovation and preventive healthcare demand. With proprietary delivery systems, exclusive high-potency ingredients, clinical validation, and a scalable influencer/retail strategy, the company has a compelling runway for growth. The Gummy USA merger is transformative, providing FDA-registered, GMP-certified manufacturing capacity that can scale revenues meaningfully.

Looking ahead, HYEX is actively advancing toward an uplisting to a major exchange to enhance liquidity and unlock institutional investor participation. The roadmap includes sustained revenue growth beyond $20M+, strengthening governance and board independence, measured expansion of public float, and continued execution on a pipeline of IP-rich, clinically validated products.

ArcStone Financial Pulse Team

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